Goldman Sachs has replaced 600 traders at its US cash equities trading desk with automated trading programs supported by 200 computer engineers.
MIT Technology Review reported that at its height in 2000, 600 traders bought and sold on the orders of the investment bank’s clients.
Fast forward 16 years, and Goldman Sachs has only two equity traders left, with automated trading programs doing the work.
The transformation at Goldman Sachs is not unique, with other Wall Street firms moving to software solutions.
Goldman Sachs CFO Marty Chavez said computer systems are moving into more financial fields where humans once dominated.
Goldman Sachs has already begun to automate currency trading and has found that four traders can be replaced by one computer engineer.
“9,000 people, about one-third of Goldman’s staff, are computer engineers,” said Chavez.